By Alexander T. Lewis of Duff & Kronfeld, P.C. posted in Family Law on Monday, August 14, 2017.
Individuals receiving spousal support often ask themselves, “what happens to my support payments if my ex-spouse dies?” Beginning July 1, 2017, Virginia law now allows the Court to order the paying ex-spouse to maintain a life insurance policy for the benefit of the party receiving support in order to secure those spousal support payments in the event of death.
Beginning July 1, 2017, Virginia Code § 20-107.1:1 becomes effective and allows a judge to order the maintenance of an existing life insurance policy. However, the judge cannot order a party to purchase a new insurance policy. The judge can order a party to maintain any existing life insurance policy on the insured party’s life that was purchased during the marriage, is issued through the insured’s employment, or is within effective control of the insured, subject to additional conditions under the new statute.
Pursuant to the statute, in making a determination as to whether to order a party to maintain a life insurance policy, the court will consider:
(1) The age, health, and insurability of the insured party;
(2) The age and health of the payee spouse;
(3) The cost of the life insurance policy;
(4) The amount and term of the award of spousal support or separate maintenance;
(5) The prevailing insurance rates at the time of the order;
(6) The ability of either spouse to pay the premium cost of the life insurance; and
(7) Such other factors as the court deems necessary or appropriate to consider in order to arrive at a fair order.
If you have any questions or would like to discuss your legal matter with an attorney, please contact Duff Kronfeld & Marquardt, P.C. at (703) 591-7475 for a complementary, 30-minute consultation.